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The Core Lithium Ltd (ASX: CXO) share price is under pressure on Wednesday.

At the time of writing, the lithium miner’s shares are down 8% to 22 cents.

This means that its shares are now down approximately 14% since this time on Monday.

What’s going on with the Core Lithium share price?

The company’s shares have come under pressure this week amid broad weakness in the lithium industry.

This appears to have been driven by concerns that a recent lithium price rebound could be short-lived.

Investors were scrambling to buy ASX lithium shares last week after prices in China suddenly rebounded.

But since then, an update out of Tesla (NASDAQ: TSLA) seems to have taken the wind out of lithium’s sails.

As we covered here, Tesla shipped 60,365 vehicles from its Shanghai-based factory in February. That’s down almost 16% from January and is its the lowest number of shipments in more than two years. This doesn’t bode well for short-term demand for lithium.

Goldman remains bearish

In addition, this week the team at Goldman Sachs reiterated its bearish view on lithium prices.

As you can read here, its analysts continue to believe that lithium prices will remain around current levels for a long time to come.

This could be particularly bad news for the Core Lithium share price, as the company is currently in the process of deciding what to do with its Finniss Operation, which has been suspended to conserve cash.

Last week, it came to an agreement with its mining contractor, Lucas Total Contract Solutions, to terminate the Finniss mining services agreement.

Management advised that it will now look to identify alternative mining solutions for the open pit “should it restart in the future.”

The post Why is the Core Lithium share price down 14% in two days? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?
• Why the 2024 outlook for these rebounding ASX 200 lithium shares looks ‘better than market expectations’
• Guess which 4 shares are being dumped from the ASX 200 index
• Here’s the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Have you been keeping an eye on the resurgent ASX gold rush?

Or perhaps you’ve already joined in.

If you did catch the fast-spreading gold fever and bought S&P/ASX 200 Index (ASX: XJO) gold shares five days ago, you should be sitting on some very satisfying gains today.

Here’s what I mean.

Over the past five days, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold miners outside of the ASX 200 – has gained a whopping 11.9%.

For some context, the ASX 200 is up 0.8% over that same period.

With the gold rush moving at full speed ahead, here’s how these leading ASX 200 gold stocks have performed over the past five days:

• Northern Star Resources Ltd (ASX: NST) shares are up 11.5%
• Newmont Corp (ASX: NEM) shares are up 12.5%
• De Grey Mining Ltd (ASX: DEG) shares are up 8.8%
• Ramelius Resources Ltd (ASX: RMS) shares are up 17.0%
• Gold Road Resources Ltd (ASX: GOR) shares are up 12.0%
• Evolution Mining Ltd (ASX: EVN) shares are up 13.0%
• Bellevue Gold Ltd (ASX: BGL) shares are up 7.6%

Boom!

Investors have been piling into the Aussie gold producers as the price of the yellow metal has rocketed to new all-time highs (in US dollar terms).

Bullion hit a new peak of US$2,141.79 per ounce. That saw the gold price up almost 18% from the recent lows of US$1,820 per ounce on 5 October.

At the time of writing, gold is trading for US$2,127.51 per ounce.

Does the ASX gold rush have further to run?

Those are some impressive one-week gains for the big gold miners, to be sure.

The question now is, is it too late to join the booming ASX gold rush?

The answer is, very likely not.

The record gold price has been achieved in part from gold’s haven status in these times of economic and geopolitical uncertainty.

Bullion has also been supported by near-record levels of purchases from central banks.

And then there’s the growing confidence that most of the world’s top economies, including the US and Australia, will begin cutting interest rates later this year as inflation returns to their target levels. Gold, which pays no yield, tends to perform better in a falling interest rate environment.

In good news for ASX gold shares, Ewa Manthey, commodities strategist at ING Groep, believes the newly minted record-high gold price will soon be surpassed.

According to Manthey (quoted by Bloomberg):

Speculation over a Fed rates pivot and continued geopolitical tensions keep gold shining. We expect gold prices to trade higher this year as safe-haven demand continues to be supportive amid geopolitical uncertainty with ongoing wars and the upcoming US election.

Three Australian gold miners tipped for more big gains

If the gold rush continues apace, as many analysts expect, it should benefit all of the Aussie gold producers.

Macquarie last month came out with a bullish assessment for three leading ASX 200 gold stocks.

The broker has an outperform rating on Evolution Mining shares with a $3.80 price target. That represents a 19% potential upside from current levels.

Macquarie also has an outperform rating on Northern Star shares with a price target of $16.00. That’s almost 14% above the current share price.

And the third ASX 200 gold stock Macquarie believes is set for more outperformance is Newmont. The broker’s $67.00 price target represents a potential upside of 30% from current levels.

The post Is it too late to join the booming ASX gold rush? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher
• The gold price just reached its highest level ever: Which miners are buys?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Cettire Ltd (ASX: CTT) share price is having a day to forget on Wednesday.

In morning trade, the ASX All Ords stock was down as much as 27% to $3.41.

It has since recovered a touch but remains down 20% at the time of writing.

What’s going on with this ASX All Ords stock?

On Monday, the company revealed that its founder and CEO, Dean Mintz, had sold $127 million worth of Cettire shares. This represented a sizeable ~7.2% of the company’s issued capital.

Commenting on the sell-down, Mintz said:

Cettire continues to perform very strongly as demonstrated in the Company’s recent H1-FY24 Results. In response to strong investor demand, undertaking this share sale provides enhanced liquidity and free float, improving the likelihood of achieving further major index inclusion over time.

It certainly was fortunate timing for Mr Mintz. At today’s low, the shares he sold had a market value of $93.8 million. That’s approximately $33 million less than he received.

But why is the Cettire share price crashing today?

Today’s decline appears to have been driven by a report from the Australian Financial Review.

It tested the company’s online luxury goods platform, spending $1,133.78 on several items.

It highlights that this figure includes shipping and taxes, but does not include the additional duties of $169.43 that were charged, bringing the total amount to $1,303.21.

However, the AFR claims that none of the duties paid as part of the order were handed over by Cettire to Australian customs officials.

The report quotes a DHL customer services officer, that said:

I can confirm that there were no DUTY/TAX charged for these AWBs and did not meet the individual threshold of $1,000.

Why?

The duties were not paid to customs because the goods were shipped individually and none of the items rose above the threshold where duties are enforced. Nevertheless, Cettire charged and banked the money.

Is that correct? The report also highlights that the Australian Border Force would consider the above purchase and delivery as a split consignment, which means that those duties are payable under section 68 of the Customs Act.

In light of the above, investors appear to be questioning how profitable the company would be if it were paying all its duties.

The company has not yet commented on the report.

The Cettire share price remains up over 120% since this time last year despite today’s decline.

The post Why is the Cettire share price crashing 27% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why Cettire, Fletcher Building, Lake Resources, and Nick Scali shares are falling today
• The CEO of this ASX stock just sold $127m worth of shares
• If you’d put $20,000 in this ASX retail stock 19 months ago, you’d have $239,000 now
• Is buying investment property in regional areas like buying ASX small-cap shares?
• Why Bell Potter says these ASX small cap shares are buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Iress Ltd (ASX: IRE) shares are falling heavily on Wednesday.

In morning trade, the ASX 200 tech stock is down 11% to $8.03.

Why is this ASX 200 tech stock crashing?

Firstly, it is worth noting that the financial company’s shares jumped yesterday afternoon before being placed in a trading halt.

That was driven by speculation that the ASX 200 tech stock could be a takeover target of US private equity giant Thoma Brava.

It isn’t a stranger to acquisitions on the Australian share market. At the end of December, the private equity firm acquired aerial imagery company Nearmap.

Is Iress getting acquired?

Unfortunately for speculators, as you might have guessed from the share price decline, the ASX 200 tech stock has not received an offer from Thoma Brava.

In response to a query from the Australian stock exchange about whether it was aware of takeover discussions, the company said:

No. Iress is not aware of any such information. In relation to the News Article, Iress is not in discussions or in receipt of a proposal in relation to a potential control transaction for Iress.

Should you buy the dip?

Most brokers aren’t overly bullish on this ASX 200 tech stock.

For example, Morgans has a hold rating and $8.60 price target on its shares at present. Whereas Macquarie has an outperform rating and $8.55 price target. This implies potential upside of approximately 6% for investors.

However, there is one broker that sees material upside potential.

Ord Minnett currently has a buy rating and $9.60 price target on its shares. This implies potential upside of 19.5% for investors over the next 12 months.

The post Why is this ASX 200 tech stock crashing 11% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Corporate Travel Management, Iress, Rio Tinto, and Woolworths shares are crashing
• 2 ASX 300 tech shares making huge moves on earnings updates

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Graincorp Ltd (ASX: GNC) share price is having a solid week.

In morning trade, the grain exporter’s shares are up 1% to $7.83.

This means that its shares are now up 4% over the last two sessions.

What’s going on with the Graincorp share price?

Investors have been buying the company’s shares this week following the release of the March ABARES crop report.

That report revealed that conditions have been favourable and has seen the 2023-24 east coast winter crop forecast increase from 21.7mt to 23.2mt.

Bell Potter has been running the rule over the report and believes it could have positive implications for the grain exporter. It commented:

The March ABARE crop report highlighted an uplift in the 2023-24 winter and summer crop forecast, having implications for both CPC (crop protection contract) payments and likely receival outcomes.

We have raised our FY24e crop receipt and export assumptions towards the upper end of GNC’s guidance range (10.0-11.0mt and 4.5-5.5mt, respectively), while also lifting CPC payments. EBITDA changes are -3% in FY24e and +1% in FY25e, resulting in NPAT changes of -7% in FY24e and +1% in FY25e.

Should you invest?

Bell Potter has responded to the report by retaining its buy rating and $9.30 on the company’s shares.

Based on the current Graincorp share price, this implies potential upside of 19% for investors.

In addition, the broker is forecasting a 22 cents per share dividend in FY 2024. This equates to a 2.8% dividend yield, boosting the potential return beyond 20%.

The broker concludes:

Valuation remains undemanding, with GNC trading at 5.6-6.3x through the cycle PBTDA. We continue to view the GNC share price as not reflecting the underlying improvement in through the cycle earnings (FY24e opening EBITDA guidance is 15% higher than opening FY21 EBITDA guidance, despite a forecast ~30% lower throughput level) and stronger balance sheet position.

The post Why is the Graincorp share price having such a bumper week? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Fletcher Building, Graincorp, GUD, and Seek shares are sinking today
• Why are these 3 ASX 200 shares tumbling 6% to 15% today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ANZ Group Holdings Ltd (ASX: ANZ) shares are on the move on Wednesday.

In morning trade, the banking giant’s shares are up 1% to $28.95.

ANZ shares higher on asset sale

Investors have been buying the bank’s shares on Wednesday after it announced the sell down of an Southeast Asian asset.

According to the release, the bank has agreed to sell 16.5% of the issued capital in AMMB Holdings Bhd (AmBank) via a block trade at a price of MYR3.85 per share (A$1.25 per share).

AmBank is a leading financial services group with over 40 years of expertise in supporting the economic development of Malaysia. It has over three million customers and employs over 9,000 people.

This sale will reduce the bank’s shareholding in AmBank from 21.7% to 5.2%. Management notes that this transaction is in line with its strategy of simplifying the bank.

Following the sale, ANZ will still have one nominated director on the AmBank Board.

What now?

The release notes that the sale proceeds will increase ANZ’s CET1 ratio by approximately 16bps and is not expected to have a material impact on its profit. Settlement is anticipated to occur on 8 March 2024.

The good news for shareholders is that the sale could have implications for future dividend payments.

The bank has advised that ANZ’s capital management considerations will include the capital release from this sale, subject to regulatory approvals.

This could mean an even bigger dividend yield than expected over the next 12 months. Not that it isn’t already among the most generous on the market.

At present, Goldman Sachs is forecasting fully franked dividends per share of $1.62 in FY 2024 (as well as FY 2025 and FY 2026). This equates to a dividend yield of approximately 5.6% for income investors based on current prices.

The post ANZ shares push higher amid asset sale and dividend bump hopes appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Is it time for me to change my tune about ANZ shares?
• Why these 4 ASX 200 shares grabbed the Motley Fool’s headlines this week
• 3 ASX 100 and ASX 200 shares I’d buy now for a $1,820 passive income in 2024!
• Why ARB, Bravura, Hub24, and Suncorp shares are storming higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Accent Group Ltd (ASX: AX1) share price is taking a tumble on Wednesday.

In morning trade, the footwear retailer’s shares are down 6% to $1.94.

Why is the Accent share price falling?

Don’t worry, today’s decline has nothing to do with a bad update or a broker downgrade, but everything to do with its upcoming dividend.

That’s because today is the day that the company’s shares trade ex-dividend for its interim dividend.

When that happens, it means the rights to the upcoming dividend payment are now settled.

So, even if you were to buy shares today, you would not be eligible to receive the Accent dividend when it is paid. Instead, the dividend will go to the seller of the shares on pay day.

As a result, its shares have fallen to reflect this. After all, if you were buying its shares, you wouldn’t want to pay for something that you won’t receive. And a dividend makes up part of a share price valuation.

The Accent dividend

Last month, Accent released its half-year results and reported a 1.7% decline in sales to $810.9 million and a 27.6% reduction in net profit after tax to $42.2 million.

While this led to the Accent board cutting its interim dividend by 29% to 8.5 cents per share, this still works out to be a very attractive 4.1% dividend yield based on where the Accent share price ended yesterday’s session.

Eligible shareholders can now look forward to receiving this dividend later this month. It is currently scheduled to be paid to shareholders on 21 March.

The post Why is the Accent share price sinking 6% today? appeared first on The Motley Fool Australia.

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More reading

• Got $5,000? Buy and hold these ASX value stocks for years
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Buy these ASX dividend stocks for big 5%+ yields
• Analysts name 2 high-yield ASX dividend shares to buy
• I’m listening to Warren Buffett and loading up on cheap ASX shares in March

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Most of my ASX share investing is done with the long-term in mind, but occasionally I’m happy to make a shorter-term profit if the return I’m hoping for happens quickly. In this article, I’m going to tell you about two S&P/ASX 200 Index (ASX: XJO) shares I recently sold.

It’s not always a good idea to take profit off the table. Winners can keep winning, and the sale can lead to paying (capital gains) tax.

But, I thought it was the right time to exit these two ASX 200 shares

Centuria Capital Group (ASX: CNI)

I bought this ASX share a few months ago when the market was more worried about interest rates, inflation and the outlook.

High interest rates are obviously a negative for real estate (and managers) because not only is their debt more expensive, but it also pushes down on the value of asset prices like property.

The Centuria share price had fallen more than 60% from September 2021 (and it’s still down more than 50%).

I managed to buy the ASX 200 share at such a low price that a 30% rise in the Centuria share price wouldn’t recover much of the lost ground. It also came with a projected distribution yield of 8%, at the time.

I was hoping for a 30% capital return, which is what I was aiming for, to take two or three years. Instead, I made a 35% return in just a couple of months, which reflects a very good annualised return.

In the next two or three years I think the Centuria share price can rise a lot from here, but I was happy to take that solid return in such a short period of time as it was one of my lower-conviction ideas, and then put the cash to work in other opportunities.

If the business can hold onto its existing investors and win new institutional clients, then this could reinvigorate investor interest in the business.

Pilbara Minerals Ltd (ASX: PLS)

I bought this ASX 200 share as the lithium price was crashing. I’m a big believer in looking at cyclical industries like resources and retail when they’re going through a bad time.

Pilbara Minerals is one of the best and strongest lithium miners in Australia, with growing production, strong growth plans for investing in the lithium value chain, and a great balance sheet. I decided to invest in the ASX 200 share with the thought that the market had become overly bearish on ASX lithium shares.

I very recently sold Pilbara Minerals shares for a 12% gain. I largely decided to sell to free up some cash for another investment which I’ll write about soon when Fool’s trading rules allow, but I was also happy to exit after four months for a good annualised return.

There’s a good chance the lithium price could keep recovering sooner rather than later because Chinese demand is reportedly rising. We’ll have to see what happens.

Foolish takeaway

I was expecting to own both of these stocks for a lot longer, but I was happy to lock in good double-digit returns for a relatively short amount of time. I’m looking forward to redeploying the money into exciting growth opportunities.

The post 2 ASX 200 shares I recently sold appeared first on The Motley Fool Australia.

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More reading

• Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?
• Why the 2024 outlook for these rebounding ASX 200 lithium shares looks ‘better than market expectations’
• Here’s the latest lithium price forecast through to 2027
• These are the 10 most shorted ASX shares
• 1 ASX dividend stock down 55% to buy right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for a beaten-down S&P/ASX 200 Index (ASX: XJO) dividend stock there’s a good chance you’ve frequented this one recently.

The passive income stock in question is ASX 200 supermarket giant Woolworths Group Ltd (ASX: WOW).

The Woolworths share price has taken a beating in 2024. At market close yesterday, shares in the ASX 200 dividend stock were down 13.2% year to date, trading for $32.57 apiece.

As you can see on the above chart, the Woolworths share price was down 4.4% heading into 20 February.

That’s when the real pain began.

Woolies released its half-year financial results on 21 February. And ASX 200 investors reacted by sending the share price down 6.6% on the day.

Although revenue was up by 4.4% year on year to $34.64 billion, losses after significant items came soared to $781 million, hit by a $1.5 billion non-cash write-down of Woolies’ New Zealand business.

In the first half of FY 2023, Woolworths reported a profit of $845 million.

Also likely spooking investors on the day was the shock announcement that CEO Brad Banducci was stepping down from the lead role after more than 13 years with the company and more than eight years as CEO.

So, why do I think this ASX 200 dividend stock is one to buy today?

Well, despite sales continuing to moderate during the first seven weeks of 2024, I’m confident this pain will pass over the medium term as cost of living pressures invariably ease.

And with an eye on passive income, I was pleased to see Woolworths up its fully franked interim dividend by 2% from last year’s interim dividend.

With an eye on the growth-driving potential of Woolworths’ digital offerings, Goldman Sachs also has a bullish take on the stock.

The broker has a buy rating on Woolworths shares with a $40.40 price target. That implies a potential 24% upside from current levels.

So, how about those dividends?

What is the ASX 200 dividend stock yielding?

Atop the 24% potential increase in the Woolworths share price, the company paid a 58 cent per share final dividend on 27 September. And the boosted interim dividend of 47 cents per share will hit eligible investors’ bank accounts on 11 April.

That equates to a full-year payout of $1.05 per share.

At Tuesday’s closing price, that sees this beaten-down ASX 200 dividend stock trading on a fully franked trailing yield of 3.2%.

The post 1 ASX 200 dividend stock down 13% in 2024 to buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Financial freedom… what could be better? It’s the reason most of us invest in ASX shares in the first place – for a future where we are financially comfortable and work because we can, not because we must. But to gain financial freedom as effortlessly as possible, one needs to buy the right ASX shares to invest in. Preferably ones that offer both capital growth prospects, and the ability to fund consistent and rising dividends.

With that in mind, here are five ASX shares that I would personally buy for a path to financial freedom that is as effortless as possible.

5 ASX shares to buy for an effortless path to financial freedom

Vanguard Australian Shares Index ETF (ASX: VAS)

First up, we have an exchange-traded fund (ETF). The Vanguard Australian Shares ETF is a great way to put down a foundation for any ASX share portfolio in my view. It gives its investors instant diversification by investing in the largest 300 shares by market capitalisation on the ASX boards.

Historically, this ETF has delivered both capital growth and franked dividend income in a fairly even split. Given this index fund’s relatively low cost, its diversification and past performance, I think it’s a great stock to buy and hold for anyone seeking financial freedom. And indeed for anyone who has already achieved it.

Wesfarmers Ltd (ASX: WES)

Next up we have ASX 200 retail and industrial conglomerate Wesfarmers. Wesfarmers is most famous for running several of Australia’s best retailers. Its crown jewel is undoubtedly Bunnings, but there’s also Kmart, Target and OfficeWorks to consider. In addition, Wesfarmers also operates a plethora of other businesses, including a clothing line, lithium mines and a gas distribution company.

Wesfarmers has a long history of delivering both high growth and meaningful dividend income. It seems to have a knack for acquiring strategic bolt-ons to its business, as well as a good sense of when to exit a holding (Coles Group Ltd (ASX: COL) comes to mind).

I think Wesfarmers’ decades-long track record of delivering for shareholders won’t end anytime soon. As such, this is another ASX share I’d be happy to hold on a journey towards financial independence.

MFF Capital Ltd (ASX: MFF)

MFF Capital is a listed investment company (LIC) that most readers probably aren’t too familiar with. Saying that, this LIC is one of my favourite investments, and gives us some much-needed international diversification in our quest towards financial freedom.

This LIC is run by Magellan Financial Group Ltd (ASX: MFG) co-founder Chris MAckay, who tends to take a very Warren Buffett-esque approach to management. MFF seeks to hold the best stocks in the world within its underlying portfolio for long periods of time. These are usually US shares, but other countries are often thrown into the mix.

Its current top holdings include Amazon.com Inc (NASDAQ: AMZN), Mastercard Inc (NYSE: MA), American Express Co (NYSE: AXP) and Meta Platforms Inc (NASDAQ: META).

I think exposure to these best-in-the-world kinds of companies is imperative for an effortless path to financial freedom.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Our next freedom fighter stock is ASX 200 investment house Washington Soul Pattinson, or Soul Patts for short. Soul Patts has long been one of my favourite ASX shares. Similarly to MFF, it invests in a portfolio of underlying assets on behalf of its shareholders.

In Soul Patts’ case, these mostly consist of large stakes in other ASX shares like Brickworks Ltd (ASX: BKW) and TPG Telecom Ltd (ASX: TPG). But the company also allocates some of its portfolio towards other asset classes like private credit and venture capital.

Another reason to like Soul Patts is its impeccable track record when it comes to shareholder returns. For one, investors have enjoyed market-beating returns from Soul Patts for decades. Late last month, we covered how the company’s portfolio delivered an average of 12.5% per annum (including dividends) over the 20 years to 31 July 2023.

Speaking of dividends, Soul Patts is also the only ASX share that can boast an annual dividend pay rise every year since 2000. Enough said.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

To finish up, we have another ASX ETF. The VanEck Wide Moat ETF is another of my favourite investments. It’s not an index fund like VAS. But rather an actively managed ETF that seeks out a small number of stocks that share similar characteristics. In this case, that would be US shares that display evidence of owning what’s known as a wide economic moat.

A moat is a term coined by Warren Buffett and refers to a company’s ability to fend off competition with a unique trait. This could be a strong brand, a cost advantage in its industry, or selling a good or service that customers find difficult not to continuously buy.

Think about the brand power of Walt Disney Co (NYSE: DIS) or Nike Inc (NYSE: NKE), the low-cost advantage of Campbell Soup Company (NYSE: CPB), or the switching cost of moving away from Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)’s Google search engine. All four of those companies are currently in MOAT’s portfolio, and you can now see why.

This ETF has also delivered some impressive returns for investors in recent years. As of 31 January, unitholders have enjoyed an average return of 16.52% per annum over the past five years.

As such, the VanEck Wide Moat ETF is an investment I would have no hesitation in recommending for anyone looking to reach financial freedom.

The post 5 ASX shares to buy for an effortless path to financial freedom appeared first on The Motley Fool Australia.

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• Are these record-breaking ASX ETFs now too expensive to buy?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Meta Platforms, Mff Capital Investments, Nike, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares Index ETF, Walt Disney, Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Brickworks, Mastercard, Meta Platforms, Nike, Walt Disney, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has positions in and has recommended Brickworks, Coles Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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